Anthem-Cigna Health Insurance Merger is Rejected by Federal Judge
Last year, CAMFT sent letters to the California Insurance Commissioner and
the Department of Managed Health Care expressing our concerns about the potential
merger of involving Anthem Blue Cross and Cigna Corporation. CAMFT raised concerns
regarding the potential for a decrease in patients’ choice for the selection
of health care insurance coverage in the marketplace; less competition in the
health care market due to an increase of power to a monopolistic insurance
company; and an increase of health insurance premiums for patients. Recently,
a federal judge has rejected Anthem’s bid to buy rival health insurer,
Cigna Corp. citing the potential for diminished competition and likely higher
costs. The U.S. District Judge hearing the matter stated that the merger would
significantly reduce competition in the already concentrated insurance market.
Anthem argued that the merged company could save money for customers by combining
the two insurers' different approaches to cost saving. An Aetna spokesman has
said the company is strongly considering an appeal. CAMFT will keep members
apprised of any developments.